Entire unaccounted sales cannot be undisclosed income of assessee if Purchase is duly accounted

Shri Hariram Bhambhani Vs. ACIT (ITAT Mumbai), ITA No.5067/Mum/2010, ITA Nos.5375 & 5423/Mum/2010, Date of pronouncement: 08.08.2012 The relevant facts are that there was a survey operation u/s.133A of the Act on 21.9.2006. During the course of survey, it was noticed that assessee had not accounted some of the sales in the total turnover. The AO has given the question asked and the answer of the assessee at pages 3 & 4 of the assessment order as under: “Q.No.11. On going through the books of accounts and documents available, it is seen that a whole bunch of challans on account of...